The Central Bank of Nigeria (CBN) released new guidelines to regulate the operations of bank accounts for Virtual Assets Service Providers (VASPs), otherwise known as cryptocurrency.

The framework provides minimum standards and requirements for banking business relationships and account opening for VASPs, and creates an effective monitoring of the activities of banks and Other Financial Institutions (OFIs) in providing service for Securities and Exchange Commission (SEC) licensed VASPs/Digital Assets (DA) entities in the country.

Among other things, the document also seeks to ensure effective risk management in the banking industry with regard to the operations of licensed VASPs.

The new guidelines followed the lifting of the ban that previously barred banks from operating accounts for crypto assets, although banks are still not allowed to hold or trade in crypto assets themselves.

CBN Director, Financial Policy and Regulation Department, Mr. Haruna Mustafa, in a circular addressed to banks and other financial institutions, stated that banks are “still prohibited from holding, trading and/or transacting in virtual currencies on their own account”.